Why Indian students are turning away from Canada

At an overseas education consultancy in Delhi, students and their parents are now exploring options beyond Canada, with universities in Italy, Germany and Australia gaining attention as preferences shift. The change follows a steep decline in applications for Canada, driven by visa challenges, financial pressures and policy changes, according to consultants and official data.

“Until 2023, most of our applications were for
Canada,” Shobhit Anand told BBC, who runs the consultancy, which helps students navigate the admission process, including visa applications.

Now, he says they have seen a drop of nearly 80 per cent. “People don’t want to apply to Canada anymore. We are also seeing a very high visa rejection rate.”

According to a report submitted by Canada’s auditor general to parliament last month, the share of Indians in the country’s incoming international student population was just 8.1 per cent in September 2025 – a sharp drop from 51.6 per cent in 2023.

Factors behind the shift

Several factors have contributed to this decline, including
visa and immigration restrictions, rising living costs and a diplomatic crisis in 2023 that strained ties between the two countries, although the situation has since improved.

For years, Canada had been a preferred destination for middle-class Indian families, offering what was seen as a dependable route to study abroad and eventually settle. Students typically enrolled in two- or three-year vocational courses, secured employment after graduation and applied for permanent residency within a few years, with the process usually taking around five years, experts say.

Policy changes and financial pressures

The shift has been driven by a combination of policy changes and economic pressures.

In early 2024, Canada introduced a two-year restriction on international student intake for undergraduate and diploma programmes, limiting it to around 350,000 study permits per year, while postgraduate courses remained unaffected.

At the same time, living expenses rose sharply and job opportunities became more limited. Rent increased across major cities, and financial requirements became stricter.

The Guaranteed Investment Certificate (GIC), required as proof of funds, was raised from C$10,000 ($7,227; £5,378) to more than C$20,000 in 2024.

“For many families, securing that amount is difficult – and with the risk of visa rejection, they hesitate,” says Sushil Sukhwani of consultancy Edwise Overseas Education. “That became a major barrier.”

Rising rejection rates increase uncertainty

Consultants say obtaining a study visa has become more difficult. Study permit rejections increased from 38 per cent in 2023 to 52 per cent in 2024 in Canada, according to ICEF Monitor, which tracks international student mobility. In price-sensitive countries like India, where overseas education depends on careful financial planning, families are now less willing to take such risks.

As a result, the focus has shifted from how to go to Canada to whether to go at all.

“There’s real fear. Even if you get there, can you make it work?” Anand says.

Scrapping of fast-track visa scheme

The auditor general’s report also highlights concerns about the now-discontinued Student Direct Stream (SDS), a fast-track visa system popular among Indian applicants.

Approval rates under SDS for Indians rose from 61 per cent in 2022 to 98 per cent in 2024, even as officials raised concerns about fraudulent applications, students not attending classes and increasing asylum claims. The scheme was scrapped by the end of 2024, after which scrutiny became stricter.